German automotive supplier ZF Friedrichshafen has appointed Mathias Miedreich, former CEO of Umicore, as the new head of its Electrified Powertrain Technologies division, effective January 1, 2025. Miedreich, 49, will succeed Stephan von Schuckmann, who resigned for personal reasons earlier this year. ZFâs CEO, Holger Klein, has overseen the division on an interim basis, guiding it through a period of restructuring and operational adjustments.
While the Electrified Powertrain Technologies division includes ZF’s electric, hybrid, and combustion engine drive systems, the bulk of its sales, totaling âŹ11.5 billion, currently come from traditional combustion and plug-in hybrid systems. The shift toward battery-electric vehicles (BEVs), however, has presented profitability challenges. CEO Klein noted earlier this year that electric drive technology remains largely unprofitable, prompting planned reorganizations of workflows and structures to enhance efficiency and collaboration.
Miedreich, with previous management experience at Continental, Faurecia, and most recently Umicore, brings knowledge in both automotive supply chains and electric mobility. During his tenure at Umicore, he faced mixed results, particularly in the struggling battery materials sector due to slowing electric vehicle demand. His recent initiatives included the Ionway cathode material joint venture with Volkswagen, which has encountered difficulties.
ZF, similarly facing challenges, is burdened with over âŹ10 billion in debt and is undergoing a cost-saving effort that includes cutting up to 14,000 jobs in Germany by 2028. Further, a planned semiconductor plant project in partnership with Wolfspeed was recently paused, impacting ZF’s efforts to increase its role in the electric mobility market, where semiconductor demand is high.
âWe are confident that Miedreichâs expertise will drive ZF’s strategic goals for adapting to market demands and advancing technological development,â said Supervisory Board Chairman Dr. Heinrich Hiesinger. The Zeppelin Foundationâs Chairman, Andreas Brand, expressed optimism that Miedreichâs background in sustainable mobility will support the companyâs long-term vision.
As ZF navigates financial pressures and a shift toward electrification, Miedreich faces the task of stabilizing its debt-heavy operations and advancing the profitability of its electric powertrain offerings.
